Intel 2008 Annual Report Download - page 68

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Table of Contents
INTEL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
We have a 52- or 53-week fiscal year that ends on the last Saturday in December. Fiscal year 2008, a 52-week year, ended on
December 27, 2008. Fiscal year 2007, a 52-week year, ended on December 29, 2007. Fiscal year 2006, a 52-week year, ended
on December 30, 2006. The next 53-week year will end on December 31, 2011.
Our consolidated financial statements include the accounts of Intel Corporation and our wholly owned subsidiaries.
Intercompany accounts and transactions have been eliminated. We use the equity method to account for equity investments in
instances in which we own common stock or similar interests (as described by the Emerging Issues Task Force (EITF) Issue
No. 02
-14, “Whether an Investor Should Apply the Equity Method of Accounting to Investments Other Than Common
Stock”), and have the ability to exercise significant influence, but not control, over the investee.
The U.S. dollar is the functional currency for Intel and our subsidiaries; therefore, we do not have a translation adjustment
recorded through accumulated other comprehensive income (loss). Monetary accounts denominated in
non-U.S. currencies, such as cash or payables to vendors, have been remeasured to the U.S. dollar.
In accordance with the adoption of Statement of Financial Accounting Standards (SFAS) No. 159, “The Fair Value Option for
Financial Assets and Financial Liabilities—Including an amendment of FASB Statement No. 115” (SFAS No. 159), we have
classified cash flows from certain trading assets as cash flows from investing activities beginning in 2008. For further
discussion, see “Accounting Changes” in “Note 2: Accounting Policies.”
As of December 27, 2008, our other accrued liabilities included $447 million in customer credit balances. Customer credit
balances were not significant as of December 29, 2007.
Note 2: Accounting Policies
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires us to make
estimates and judgments that affect the amounts reported in our consolidated financial statements and the accompanying notes.
The accounting estimates that require our most significant, difficult, and subjective judgments include:
The actual results that we experience may differ materially from our estimates.
Cash and Cash Equivalents
We consider all liquid available-for-sale debt instruments with original maturities from the date of purchase of approximately
three months or less as cash and cash equivalents.
60
•
the valuation of non
-
marketable equity investments and the determination of other
-
than
-
temporary impairments;
•
the valuation of investments in debt instruments and the determination of other
-
than
-
temporary impairments;
•
the assessment of recoverability of long
-
lived assets;
• the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax
positions); and
•
the valuation of inventory.